Wednesday, February 6, 2008

Managing Carbon Risk in High Seas

Like the “Electrifying” Discoveries of Ben Franklin 250 Years Ago, Innovative Marine Shipping Companies Are Experimenting with Flying Kites to Deliver a Social Response to Contemporary Business Challenges in the Shipping Industry

It was June 1752 and one of the Founding Fathers of America began an experiment to see if lightening was actually electricity by flying a kite into a thunder storm. That prolific leader, a well known inventor, scientist, author, politician, civic activist and diplomat was Benjamin Franklin. Franklin’s kite flying experiment which set out to prove that lighting had electricity “energy” was an influential, as it led to the invention of the lightening rod.

Two hundred and fifty-six years later a German shipping company named the
Beluga Group has experimented with using a kite to use the power of the wind to reduce oil consumption on board its massive shipping vessels. In December 2007 the 10,000-ton 'MS Beluga SkySails' set its maiden voyage route from Bremerhaven, Germany, to Venezuela. But instead of relying solely on its petro-based engine to power its course, the MS Beluga SkySails used a 320 square meter sail to reduce its petro-consumption by relying on the force and grace of the wind, like early ocean going pioneers travelled hundreds of years ago. Like Franklin’s experiment of 1752, the Beluga SkySails is a new age experiment using technology as old as the kite, but still as innovative as it is applied to a new era of energy challenges.

The Beluga Group estimates that 20% or $1,600 of the daily fuel bill can be reduced by using its large kite. If the first maiden voyage from Germany to Venezuela proves successful the company intends to increase the size of the kite to 600 square meters and deploy them on its fleet of 1,500 oceanic vessels.

The price volatility of oil, increased corporate financial and reputational risks surrounding climate change and carbon, and cost of transportation have influenced Beluga Group’s decision to integrate the kite concept with their shipping vessels. According to
REUTERS, “…the world's 50,000 merchant ships, which carry 90 percent of traded goods from oil, gas, coal, and grains to electronic goods, emit 800 million metric tons of carbon dioxide each year. That's about 5 percent of the world's total. Also, their fuel costs rose by as much as 70 percent last year...”.

According to researchers at
Rochester Institute of Technology (RIT), pollution from the marine shipping industry contributes to 60,000 premature cardiopulmonary and lung cancer deaths around the world each year. The RIT report, “Mortality from Ship Emissions: A Global Assessment” was released just as the International Maritime Organization (IMO) began meeting to discuss how to regulate emissions from the marine shipping industry.

Calling the
“Beluga SkySails” an “innovative auxiliary propulsion system” Niels Stolberg, CEO of the Beluga Group noted, “…you have to have the courage to try out something new”. The Beluga Group also states, “…application of the towing kite propulsion system points to a sustainable way out of direct dependence on the oil price. Furthermore, the MV “Beluga SkySails” even combines ecology and economy on the high seas.”

The Beluga SkySails propulsion system is a hybrid, taking the best of the old and integrating it with the best of the new to create a truly unique way to continue its maritime shipping operations in our fast paced 24-7 in a world that is also constrained by carbon and health impacts of an oil-dominated economy. In providing a
social response service upgrade to its operations, Beluga stands to win credibility, reputation and market access from those seeking lower carbon risk shipping methods.

Even at the high seas, innovative applications to conserve energy, integrate economics with ecology, reduce climate/carbon risk and enhance corporate reputation and product/service offerings are well underway. It’s an exciting world, with a rich mix of new and old intersecting toward new paradigms for business growth.

Share with us your thoughts on the Beluga SkySails social response to energy and emissions, and your views on how others firms are merging old concepts with new innovations to create positive environmental, economic and social impacts.

Mark C. Coleman
Senior Associate & World Inc. Case Leader, AHC Group, Inc.

Mark@ahcgroup.com


To see a video stream of the Beluga SkySails: http://www.wintecc.de/video_en.html

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